Councillors voted seven-two in favour of a recission motion which revoked $25,000 funding towards the study.

At the July 12 meeting councillors voted in favour of funding the study.

However for the study to go ahead, it would also have relied on Wollondilly council matching the funding.

The original motion to fund the study was brought forward by councillor Ian Scandrett.

The proposed project would construct a shared walking and bike track along existing unused rail lines between Mittagong and Picton. 

It would also include running heritage trains along the line.

Most councillors supported the concept of the project but believed the issue of funds for a feasbility study should be discussed at the next quarterly budget review.

"$25,000 that we’re going to spend and then the project may never go ahead anyway because it’s an extensive amount of money involved,” Cr Peter Nelson said.

Cr Duncan Gair said the project had merit but he believed Highlands residents had other priorities.

“We went to community and said what do you want us to fight for? Roads, drainage and open spaces, they were the three main priorities,” he said.  Despite overwhelming support for the recission motion, councillors Larry Whipper and Scandrett argued the decision to fund the study should stand.

They said this could be a great tourism opportunity for the Highlands.

Both said this would provide better connectivity between the northern villages of the shire.

“Connectivity of the northern villages is a very real issue,” Cr Whipper said.

“It’s $25 000. It’s an investment. If Wollondilly don’t come and match it, this is not going to go anywhere anyway.”

Cr Nelson said if Cr Scandrett brought the motion back later in the year with a letter of support from Wollondilly Council, the Economic Development Committee and a report from staff, he would support it.